China just pulled the trigger on what amounts to a precision strike in the ongoing trade war. The country’s Ministry of Commerce added MP Materials Corp. and USA Rare Earth Inc. to its export control list on June 22, effectively kneecapping two companies the US government has been grooming as alternatives to Chinese mineral dominance.
These aren’t random companies. They’re the two firms Washington has poured hundreds of millions of dollars into specifically to reduce American dependence on Chinese rare earths. Beijing didn’t just restrict exports. It went after the exact companies designed to replace it.
What the restrictions actually mean
Rare earths are the 17 metallic elements that make modern technology possible. They go into everything from fighter jet guidance systems to EV motors to the magnets inside your phone.
China controls roughly 60% of global rare earth mining. That number alone understates the leverage, though, because China also dominates nearly all refining capacity. You can dig the stuff out of the ground in Texas or California, but if you need it processed into something usable, the road still runs through Beijing.
